Does the donee of a gift ever have to pay gift tax?
- November 13th, 2023
- David Greene
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Unfortunately, the answer is sometimes yes. This happens if the donor does not pay the tax or properly file a gift tax return. This usually happens when is deceased because that is usually the only situation where the IRS pursues…
Are gifts to charity by a business deductible?
- January 26th, 2023
- David Greene
- Comments Off on Are gifts to charity by a business deductible?
They are not always deductible, but in your case I believe they are. You explained further that you conducted a promotion where you advertised that a portion of every sale would go to charity for a certain period of time. …
Who has to pay gift tax – donor or recipient?
- September 16th, 2021
- David Greene
- Comments Off on Who has to pay gift tax – donor or recipient?
That is a good question, with an easy answer. The receiver of the gift does not pay the gift tax. The donor pays the tax. However, anyone can give an individual a gift of money, property or any other asset…
What to know about gifting stock to a charity.
- March 3rd, 2021
- David Greene
- Comments Off on What to know about gifting stock to a charity.
There are many alternative ways to donate other than money. One I want to discuss today is the gift of stocks. If you have been holding some stocks for a good while they have probably increased in value with substantial…
How should one report non-cash contributions?
- May 19th, 2020
- David Greene
- Comments Off on How should one report non-cash contributions?
Keeping proper records to support contributions claimed as a tax deduction can be tricky. If you claim cash contributions, you must have a receipt from the charitable group to whom you gave the contribution. Also, the gift must be to…
Is a Trust only for the very rich – Part 2?
- August 7th, 2019
- David Greene
- Comments Off on Is a Trust only for the very rich – Part 2?
I mentioned that the three primary reasons for forming a trust are (1) avoidance of probate, (2) asset protection from creditors and (3) the ability to control your assets and how they are used for a long time after your…
What proof is needed to support charitable deductions?
- April 30th, 2019
- David Greene
- Comments Off on What proof is needed to support charitable deductions?
Here are the rules: (1) You must have a written statement from the charity for a gift over $250 or at least a bank or credit card statement for any monetary donation; (2) gifts are deductible in the year made,…
HAPPY NEW YEAR
- December 31st, 2018
- David Greene
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I hope all of my readers had a very joyous Christmas holiday and I hope you are looking forward to a New Year filled with hope and promise. Of course, the way to make those hopes and resolutions come true…
When can a business deduct gifts to Charities?
- July 19th, 2018
- David Greene
- Comments Off on When can a business deduct gifts to Charities?
Gifts to charities by a business are not alweays deductible, but in some cases they are. The IRS Chief Counsel recently issued an Advisory Ruling in which he said that when a business conducts a promotion where it advertises that…
What Document Support Is Needed for Charitable Contributions
- May 23rd, 2017
- David Greene
- Comments Off on What Document Support Is Needed for Charitable Contributions
Here are the rules for deducting charitable contributions and the supporting documents needed. Any contribution of $250.00 or more must be substantiated by a contemporaneous written receipt by the donee organization. This receipt must state whether or not the donee…